Canadian income taxpayers outside Alberta would have to pay about $1,000 more in higher taxes every year to maintain Ottawa’s current spending levels if not for Albertans’ outsized (net) contribution to federal finances, finds a new study by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Many Canadians don’t realize what a sizeable contribution Albertans make to federal finances and how taxpayers in other provinces benefit from it,” said Tegan Hill, Director of Alberta Policy at the Fraser Institute and co-author of Illustrating Albertans’ contribution to the rest of Canada.
Each year, Albertans send far more tax dollars and other payments to Ottawa than they receive back in money and transfers, resulting in a net contribution to federal finances, said the report.
Tegan Hill
From 2007/08 to 2026/27, Albertans’ net contribution is a projected $321.9 billion–nearly four times British Columbians’ ($87.8 billion) and more than five times Ontarians’ net contribution ($59.6 billion). The other seven provinces were net recipients during that time period, which means they receive more money back from Ottawa than the amount of revenue they send, added the Fraser Institute.
Maintaining federal spending levels without Albertans’ net fiscal contribution over the period would require income taxpayers in other provinces to pay an additional $1,007 per year on average, it said.
“As Canadian federalism increasingly takes centre stage in many of the country’s important policy discussions, it is important that all Canadians and policymakers understand the significant contribution Albertans make every year to federal finances and how Canadians in other provinces benefit from that,” Hill said.
The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal and Halifax and ties to a global network of think-tanks in 87 countries.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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